‘Flawless’ Hyundai tops J.D. Power ranking of model launches

Lindsay Chappell
Automotive News
July 22, 2009 - 8:00 am ET

The Hyundai Genesis ranked as the most smoothly launched vehicle in a U.S. study that grades automakers on their ability to hit sales, price and dealer-profit targets with new models. The 2009 Genesis scored 689 out of 1,000 possible points on J.D. Power and Associates' newly created Vehicle Launch Index. The worst performer: The 2009 Toyota Matrix. It scored 439 on a scale that measures sales volume, vehicle design, quality, the need for sales incentives, dealer inventory levels, and dealer gross profits. Following the Genesis were the Ford F-150 pickup and the Volkswagen Tiguan. The Matrix, the Dodge Ram pickup and the Pontiac Vibe -- General Motors' now-abandoned twin version of the Matrix -- were rated as the worst introductions last year. The 2008 launch of the Matrix was complicated by quality issues, unappealing design and higher-than-average incentives in its segment, according to J.D. Power. "How well a new model sells is only one part of the equation for judging how well a vehicle launch has gone," said Gary Dilts, a senior vice president at J.D. Power. "The other questions are: Is it selling at the level that was forecast? Is it selling at the expected price point? Is it holding its value in the market? Are dealers making the expected margin on it? Is it causing the manufacturer to spend more than planned on marketing support? "Launches represent a four- to five-year investment of huge sums of money," Dilts said, explaining why Power has begun measuring vehicle debuts. "Automakers make assumptions about the market that turn out to be wrong a few years later, and it can be very expensive."

 

J.D. Power and Associates 2009 Vehicle Launch Index Ranking 2009 Hyundai Genesis 689 2009 Ford F-150 673 2009 Volkswagen Tiguan 663 2009 Nissan Maxima 636 2009 Subaru Forester 631 2009 Honda Pilot 629 2009 Ford Flex 620 2009 Honda Fit 619 2008 Dodge Challenger 618 2009 Volkswagen Passat CC 601 2009 Nissan Murano 593 2009 Mazda 6 592 Industry Average 582 2009 Lincoln MKS 580 2009 Volkswagen Routan 579 2009 Acura TSX 576 2009 Infiniti FX 575 2008 BMW 1 Series 568 2009 Jaguar XF 567 2009 Chevrolet Traverse 565 2009 Audi A4 563 2008 Pontiac G8 563 2009 Toyota Corolla 561 2009 Acura TL 523 2009 Dodge Journey 513 2009 Pontiac Vibe 504 2009 Dodge Ram Pickup Lt Duty 459 2009 Toyota Matrix 439

 

$50 billion tab J.D. Power estimates that automakers will spend $50 billion to launch 205 new and redesigned vehicles over the next four years. Dilts called the Hyundai Genesis launch "flawless" because of its success in hitting planned price levels and sales numbers. The new F-150 launch succeeded thanks to Ford Motor Co.'s decision to delay the introduction until dealers could sell off inventories of 2008 models, Dilts said. By "clearing the runway, the F-150 was able to sell as planned," he said. By comparison, Dodge's Ram pickup was introduced amid large inventories of unsold 2008 Rams. The oversupply resulted in the Ram carrying incentives of $7,500. Dilts suggested that the primary cause for a poor launch is a company's failure to honestly consider the impact of competitors' models. "It's very difficult, politically, for a manager on a new model program to push back from the official forecasts on how many units a vehicle will sell, and how much competition it will face," said Dilts, a former Chrysler executive. "People don't want to risk their careers by challenging their company. But the result, three years later, is a vehicle that has 50,000 sales instead of 100,000." Other contributors to a poor launch are product quality problems, low brand image and unappealing design.